John Smith informs me that today (6/6/2025), a Santa Barbara Superior Court issued an order preventing the restart of the Santa Ynez Unit’s onshore pipeline pending Court resolution of the dispute.
Sable’s shares plunged 18% in response to the news.
Archive for the ‘Regulation’ Category
Sable shares plunge as judge bars restart of Santa Barbara pipeline
Posted in California, pipelines, Regulation, tagged judge bars pipeline restart, Sable Offshore, Santa Ynez Unit on June 3, 2025| Leave a Comment »
New England coalition files suit challenging the New England Wind 1 & 2 approvals
Posted in energy policy, Offshore Wind, Regulation, tagged Ack for Whales, Aquinnah Wampanoag, BOEM, DOI, Green Oceans, lawsuit, New England Wind, NMFS on May 29, 2025| Leave a Comment »
ACK For Whales, the Wampanoag Tribe of Gay Head / Aquinnah, Green Oceans, a coalition of charter fishing groups and seven individuals filed suit in federal court asserting that the Departments of Interior and Commerce violated the law when they approved the Record of Decision (ROD) for the New England Wind 1 and 2 projects.
Construction has not yet begun on the New England Wind 1 and 2 projects. The leases abut Vineyard Wind’s troubled lease 0501 (see above map), site of last summer’s turbine blade failure.
Per ACK for Whales President Vallorie Oliver:
“In offshore wind project after offshore wind project, from Revolution Wind, Vineyard Wind and New England Wind to the others, the government was so desperate to rush these projects that it cut corners and violated the law,” Oliver said. “The government didn’t care if it trampled on the Wampanoag sacred beliefs and rites, hurt the charter boat, fishing and lobster industries or wiped out the Right whales. The only thing that mattered was to get these environmentally destructive turbines built, costs to the rest of us be damned.”
| Plaintiff: | ACK FOR WHALES, INC., VALLORIE OLIVER, AMY DISIBIO, VERONICA BONNET, DOUGLAS LINDLEY, STEVEN AND SHARYL KOHLER, DANNY PRONK, WILLIAM VANDERHOOP, GREEN OCEANS, RHODE ISLAND PARTY AND CHARTER BOAT ASSOCIATION, CAPE COD CHARTER BOAT ASSOCIATION, INC., CONNECTICUT CHARTER AND PARTY BOAT ASSOCIATION, INC., MONTAUK BOATMEN AND CAPTAINS ASSOCIATION, INC. and WAMPANOAG TRIBE OF GAY HEAD AQUINNAH |
|---|---|
| Defendant: | UNITED STATES DEPARTMENT OF COMMERCE, NATIONAL MARINE FISHERIES SERVICE, BUREAU OF OCEAN ENERGY MANAGEMENT, UNITED STATES DEPARTMENT OF THE INTERIOR, DOUG BURGUM, in his official capacity as Secretary of the Interior, WALTER CRUICKSHANK, in his official capacity as the Director of the Bureau of Ocean Energy Management, HOWARD LUTNICK, in his official capacity as the Secretary of Commerce and EUGENIO PIEIRO SOLER, in his official capacity as the Assistant Administrator of the National Marine Fisheries Service |
| Case Number: | 1:2025cv01678 |
| Filed: | May 27, 2025 |
| Court: | U.S. District Court for the District of Columbia |
Judge issues preliminary injunction halting Sable’s pipeline work
Posted in California, energy policy, pipelines, Regulation, tagged California Coastal Commission, halt to pipeline work, preliminary injunction, Sable Offshore, Santa Ynez Unit on May 28, 2025| Leave a Comment »
For the reasons set forth herein, the application of the California Coastal Commission for issuance of a preliminary injunction is granted. No bond is required. The Commission shall present a written order for entry by the court.
The roller coaster ride continues. Sable Offshore’s stock price plunged in response to the latest order.
First step toward mineral lease sale offshore American Samoa
Posted in deep sea mining, energy policy, Regulation, tagged American Samoa, BOEM, deepsea mining, Impossible Metals on May 28, 2025| Leave a Comment »
As a result of a formal request from the Impossible Metals company, BOEM will begin a multi-step process which could lead to a marine minerals lease sale offshore American Samoa.
The first step will be the publication of a request for information and Interest in the Federal Register. This notice will seek public input that will help inform BOEM’s assessment of geologic conditions, potential environmental and cultural impacts, and other uses of the area.
Impossible Metals has developed an autonomous underwater vehicle (AUV) for selective mineral harvesting. Their novel AUV uses advanced robotics, AI, and a buoyancy engine to hover above the seabed and minimize disruption to the habitat and native biodiversity. Impossible Metals believes this method will have the lowest environmental impact and cost among land and deep-sea mining approaches.
9 minute interview with the CEO of Impossible Metals:
Offshore wind opponents feel betrayed by Empire Wind reversal
Posted in climate, energy policy, Offshore Wind, pipelines, Regulation, tagged commercial fishing, Constitution pipeline, Empire Wind, Equinor, Green Oceans, Norway, offshore wind regulation, pause reversal, Wampanoag Tribe on May 27, 2025| Leave a Comment »
With victory in sight, the President pulled the ball away from his most ardent East Coast supporters.
Further thoughts on the reasons for the Empire Wind reversal:
- Legal/regulatory: Although lease cancellation is not a reasonable option at this time, a pause for further review of the environmental and procedural issues is justified. During the previous Administration, the regulators seemed to function primarily as cheerleaders, as evidenced by the departures (examples here and here), the BOEM/NOAA strategy document, and the promotional tweets. Also, where is the long awaited report on the turbine blade failure? How do you proceed with development before that has been released for public review?
- Norwegian govt intervention: Some would argue that Empire Wind was a bad investment by Equinor (2/3 govt owned) and it would have been better to take the losses and move on.
- Trade unions: Concerns about the job losses are warranted, but the long term viability of the subsidy dependent offshore wind industry is in doubt, and important industries (e.g. fishing and tourism) may be negatively impacted. Other job losses could occur if offshore wind drives up electric prices and decreases grid reliability.
- Pipeline deal: The regionally important Constitution natural gas pipeline is still very much in doubt despite reports of a deal with Governor Hochul. With or without her support, climate-ultras are driving NY/New England energy policy and will, at a minimum, stall this project. Fisheries Nation was particularly blunt in criticizing fishermen being “used as a poker chip” to gain tepid support for the pipeline project.
Following the reversal of the Empire Wind decision, Green Oceans, ACK for Whales, Long Island Commercial Fishing Association, Protect Our Westport Waters, Save Greater Dowses Beach, Save Right Whales Coalition, and the Wampanoag Tribe of Gay Head/Aquinnah petitioned Secretary Burgum to halt all wind construction in New England coastal waters and begin a “complete reevaluation” of their permits under applicable federal laws. In addition to right whale and tribal cultural resources concerns, the letter cited:
- Critical habitat destruction impacting cod spawning grounds.
- Inadequate response to turbine blade failures and environmental cleanup.
- Severe adverse impacts on regional fisheries and economic displacement.
- Compromised national defense radar and marine safety capabilities.
- Misleading economic analyses that omit substantial regional job losses and increased electricity prices.
OCS oil and gas leasing provisions in the “Big Beautiful Bill” – good holiday reading 😀
Posted in Alaska, energy policy, Gulf of Mexico, Offshore Energy - General, Regulation, tagged Big Beautiful Bill, Cook Inlet, Gulf of America, litigation, offshore oil and gas leasing, royalty rates, sale requirements on May 23, 2025| Leave a Comment »
Part VIII, Offshore OIl and Gas Leasing, is a good read for those interested in OCS leasing policy. This cleverly crafted part of the bill specifies leasing schedules, streamlines the leasing process, and minimizes litigation risks. Highlights:
- Minimum royalty rates return to 12.5% from 16.67% post-IRA. (This is good for small, shelf producers.) The maximum rate remains 18.75%.
- Requires a Gulf of America lease sale by 8/15/2025, a sale by 3/15 and 8/15 in each of the following 14 years (2026-2039), and a sale by 3/15/2040. 80+ million acres must be offered at each sale unless that amount of acreage is no longer available for leasing.
- The lease form, lease terms, economic conditions, and stipulations 4 through 10 must be the same as for Lease Sale 254 (3/18/2020). Stipulations 1-3 may be updated.
- Requires seven 1+ million acre (if available) Cook Inlet lease sales from 2026 – 2032. Beginning in 2035, 90% of the revenues go to the State of Alaska.
- The required lease sales may be in addition to the lease sales held under the 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Program.
- Adherence with the Biological Opinion shall satisfy the Secretary’s obligations under the Endangered Species Act of 1973 and the Marine Mammal Protection Act of 1972
- Previous EIS’s for the Gulf of Mexico shall satisfy the Secretary’s NEPA obligation.
- Consistency determinations prepared by BOEM for Lease Sale 261 for the States of Texas, Louisiana, Mississippi, Alabama, and Florida will satisfy the Secretary’s CZMA obligations.
- The Secretary may waive any requirement under the Outer Continental Shelf Lands Act that the Secretary determines would delay issuance of a lease.
- A lease must be issued to the highest responsible qualified bidder not later than 90 days after the sale date.
- The Secretary shall establish a process through which a Governor may nominate for leasing under a lease sale held under this section an area of the OCS that is adjacent to the waters of the State; and is unleased and available for leasing. If the Governor of a State nominates an area, the Secretary shall include the area in the next scheduled sale. (It appears that this provision applies only to the Gulf of America. Objective?)
- G&G surveys must be approved within 30 days after a complete application is received.
- A lease awarded under Lease Sale 259 or Lease Sale 261 shall not be set aside, vacated, enjoined, suspended, or cancelled except in accordance with section 5 the Outer Continental Shelf Lands Act (43 U.S.C. 1334). Also, new terms or conditions may not be added to these leases. (This protects lessees from pending litigation related to these leases).
- Any action to approve, require modification of, or disapprove any exploration plan, development and production plan, bidding procedure, lease sale, lease issuance, or permit or authorization related to oil and gas exploration, development, or production, or any inaction resulting in the failure to hold a lease sale shall be subject to judicial review only in a United States court of appeals for a circuit in which an affected State is located.
Louisiana, API, and Chevron have also challenged the NMFS biological opinion
Posted in energy policy, Gulf of Mexico, Regulation, tagged API, Chevron, Endangered Species Act, Gulf of America, Louisiana, NMFS biological opinion, offshore oil and gas operations, Rice's whale on May 22, 2025| Leave a Comment »
Their filing is attached. I found the following points to be particularly compelling:
p.3: “Despite no evidence that an Oil and Gas Program vessel has ever struck a Rice’s whale, the 2025 BiOp projects that Oil and Gas Program vessels will lethally strike numerous Rice’s whales over the term of the 2025 BiOp. On that basis alone, the Service found that the Oil and Gas Program will jeopardize the continued existence of the Rice’s whale, and developed a multi-step reasonable and prudent alternative which it asserts will reduce projected vessel strikes to zero.“
p. 4: “The Rice’s whale is a rarely found animal that the Service first identified as a new species (separate from the non-endangered Bryde’s whale) in 2021. 86 Fed. Reg. 47,022 (Aug. 23, 2021). There is no evidence that an Oil and Gas Program vessel has ever struck a Rice’s whale (or a Bryde’s whale) despite continued operation in the Gulf over many decades.”
p. 5: “The 2025 BiOp disregards the Bureaus’ logical, fact-based conclusion. Instead, the Service’s 2025 BiOp engages in speculation and guess-work to surmise that Oil and Gas Program vessels could be striking and killing Rice’s whales on a regular basis. The Service ignores the best available data (i.e., showing no recorded observations of an oil and gas vessel striking a Rice’s whale) and instead presumes that forceable and lethal collisions between oil and gas service vessels and 60,000-pound whales are regularly occurring but somehow going unnoticed by the vessels and their crews and that the carcasses silently disappear into the water, never to be seen again.“
NMFS issues new biological opinion for oil and gas operations in the Gulf of America; Earth Justice promptly sues NMFS
Posted in energy policy, Gulf of Mexico, Regulation, tagged Endangered Species Act, Gulf of America, NMFS biological opinion, reasonable and prudent alternative, Rice's whale on May 22, 2025| Leave a Comment »
National Marine Fisheries Service (NMFS) biological opinion dated 5/20/2025
Background:
- Section 7(a)(4) of the Endangered Species Act (ESA) requires federal agencies to confer with NMFS on any action that is likely to jeopardize the continued existence of proposed species or result in the destruction or adverse modification of proposed critical habitat.
- Section 7(b)(3) of the ESA requires that at the conclusion of consultation, NMFS provides an opinion stating whether the Federal agency’s action is likely to jeopardize ESA-listed species or destroy or adversely modify designated critical habitat.
- Last year, the U.S. District Court for the District of Maryland vacated the NMFS 2020 Biological Opinion for Gulf of Mexico Oil and Gas activities effective May 21, 2025, so failure to complete the opinion by that date would have jeopardized oil and gas operations in the Gulf.
Key points in the biological opinion:
- p. 598: The proposed action is not likely to jeopardize the continued existence of sperm whale, Northwest Atlantic loggerhead sea turtle, Kemp’s ridley sea turtle, North Atlantic DPS green sea turtle, leatherback sea turtle, hawksbill sea turtle, or Gulf sturgeon.
- The proposed action is not likely to destroy or adversely modify loggerhead or Gulf sturgeon designated critical habitat, or proposed critical habitat for green sea turtle North Atlantic DPS or Rice’s whale.
- p. 599: The operation of oil and gas vessels in the Gulf of America, in an area where the endangered Rice’s whale occurs, is likely to jeopardize the continued existence of the whale due to the risk of vessel strike.
According to NMFS, the reasonable and prudent alternative (see below) reduces or avoids the primary threat to Rice’s whales, the risk of injurious and lethal vessel strike interaction. The impacts of other stressors are more limited in space and time, diffuse, or not likely to result in adverse effects to Rice’s whale.
The reasonable and prudent alternative (RPA) requires the following as it relates to vessel activity in the action area. More detail on p. 601:
- Immediately begin to use technology to enable Rice’s whale vessel strike avoidance and monitoring of presence of Rice’s whale.
- Establish an expert working group to support development and implementation of a Rice’s whale vessel strike avoidance technology plan (RW Tech Plan)
- Improve understanding of Rice’s whale vessel strike risk associated with the proposed action
- Develop a Rice’s whale vessel strike avoidance technology plan (RW Tech Plan)
- Undertake independent peer review
- Implement Rice’s whale vessel strike technology plan
- Monitor Rice’s whales to ensure no likelihood of jeopardy during RPA implementation
Comment: Because the risk to the Rice’s whale in the central and northwestern GoA is highly speculative (see analysis by Darren Ireland), the RPA is arguably excessive. However, I like the RPA’s technological and management system focus.
Unsurprisingly, Earth Justice et al found the NMFS opinion inadequate and filed a suit (attached) in Maryland calling on the court to vacate the opinion and grant injunctive relief.
How can they sue in a Federal court in Maryland, far away from the Gulf? The venue was ostensibly chosen because NMFS headquarters are located in a Maryland suburb of DC. The Maryland court is also likely to favor the plaintiffs, which may have been a factor in the choice of venue. It’s a great country! 😉
Sable Offshore Sues Santa Barbara County over Blocked Transfer Permit
Posted in California, Offshore Energy - General, Regulation, tagged Exxon, litigation, Sable Offshore, Santa Barbara County, Santa Ynez Unit, tie vote on May 13, 2025| Leave a Comment »
A good Nick Welsh, Santa Barbara Independent article has been brought to my attention by John Smith. Bonus points for the baseball analogy:
“In baseball, ties famously go to the baserunner, but in county government it’s forced a legal fight in the courts.”
“The oil company Sable Offshore is insisting that when the County Board of Supervisors voted 2-2 on whether or not to allow another oil company, Exxon, to transfer its permits to Sable, the tie goes to Sable.”
“Accordingly, Sable — much in the limelight recently — just filed a lawsuit against the Santa Barbara County Board of Supervisors in federal court to make that point. Joining Sable in this dispute is ExxonMobil, the oil giant that sold Sable its three offshore platforms, its 120-mile pipeline, and its onshore oil storage and processing facilities known as the Santa Ynez Unit two years ago.”
Because the Planning Commission had voted 3-1 to allow the transfer, Sable argues that the 2-2 Supervisors vote upholds the Planning Commission decision.
Never a dull moment in the Santa Ynez Unit restart doneybrook. More on the tie vote here and here.
Protect Our Coast NJ petitions EPA to withdraw permit allowing Sunrise Wind to use open loop cooling
Posted in Offshore Wind, Regulation, tagged EPA, HVDC cooling systems, Protect Our Coast NJ, Sunrise Wind on May 13, 2025| Leave a Comment »
Protect Our Coast NJ submitted a petition (attached) on May 12, 2025 requesting EPA to withdraw a permit that would allow the Sunrise Wind to use an open loop cooling system. The gist of the filing:
“Sunrise Wind has obtained an EPA permit to pull nearly 8 million gallons per day (MGD) of seawater from the Atlantic Ocean and discharge it, after use in cooling and mixture with sodium hypochlorite (chlorine), back into the environment at elevated temperatures. This open-loop system was authorized by EPA Region 1 under NPDES Permit MA0004940. However, approval of this method ignores EPA’s Best Technology Available (BTA) requirement and no rigorous alternatives analysis was conducted to justify this method over a closed-cycle cooling system, despite the known and broad negative environmental impacts that will result, including harms to early life stages of marine species.
The facility lies within a biologically rich and economically vital region of southern New England and the New York Bight. NMFS and BOEM have acknowledged this area as essential fish habitat (EFH) for numerous federally managed species, including Atlantic cod, winter flounder, and longfin squid.“
Bud's Offshore Energy (BOE) 